Diageo has made a good start to fiscal 2023, with organic net sales growth across all regions, Ivan Menezes its chief executive, has said.
This reflects the Guinness-makers 'advantaged portfolio, its continued investment in brand building and its agile supply chain and culture'.
World's Biggest Spirit-Maker
The world's biggest spirit-maker boasts a collection of brands which includes Johnnie Walker, Crown Royal, J&B and Buchanan’s whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio and Tanqueray.
Diageo's products are sold in more than 180 countries around the world.
"We expect the operating environment to remain challenging with ongoing volatility due to geopolitical uncertainty, a weakening of consumer spending power, inflationary pressures and disruption related to COVID-19," he noted.
"However, I am confident in the resilience of our business and our ability to navigate these headwinds while executing our strategic priorities, including our ambitious 2030 sustainability plan.
"We remain well-positioned to deliver our medium-term guidance for fiscal 2023 to fiscal 2025 of organic net sales growth consistently in the range of 5% to 7% and organic operating profit growth sustainably in the range of 6% to 9%,” he added.
Scotland Water Shortage
Earlier this week, Menezes said that he believes Scotland could face a water shortage due to climate change unless businesses and lawmakers act, he said at the Reuters Impact conference on Monday.
He highlighted that the threat in Scotland, where Diageo is the biggest exporter of Scotch whiskey through brands like Johnnie Walker, depends on how successful the world is at averting climate change and hitting a 1.5-degree Celsius limit on global warming.
"There are scenarios where we could see water being stressed in Scotland," Menezes said.
Read More: Diageo Boss Warns On Scottish Water Shortage